Maruti Suzuki Approves Third Plant at Kharkhoda, Investing ₹7,410 Crores

In a significant expansion of its manufacturing capabilities, Maruti Suzuki India Limited has approved the construction of a third plant at its Kharkhoda facility in Haryana. The announcement came following a board meeting, as the company aims to boost its production capacity to meet growing domestic and export demand.

The new plant will have a capacity of up to 2.5 lakh vehicles per year and represents an investment of ₹7,410 crores. This expansion will be financed through internal accruals, according to the company's filing with the stock exchanges.

With this addition, Maruti Suzuki's total production capacity at the Kharkhoda site is expected to reach 7.5 lakh units annually once fully operational. The company plans to complete the new plant by 2029.

Strategic Expansion in Sonipat District

The Kharkhoda facility, located in Sonipat district of Haryana, is a relatively new addition to Maruti Suzuki's manufacturing network. The first plant at this location only began commercial operations last month, in February 2025, producing the popular Brezza model. A second plant with a capacity of 2.5 lakh units is already under construction.

The strategic location of Kharkhoda offers significant advantages for Maruti Suzuki's operations. Situated approximately 19 km from Sonipat and with excellent connectivity to the Kundli Manesar Palwal Expressway, the site provides world-class infrastructure and logistics advantages. The company acquired 900 acres in IMT Kharkhoda for this manufacturing hub, highlighting its long-term commitment to the region.

Part of Broader Growth Strategy

This expansion is part of Maruti Suzuki's broader strategy to maintain its leadership position in India's growing automotive market. The company has announced investments of over ₹50,000 crore by 2030-31, including ₹45,000 crore dedicated to doubling its capacity to 4 million vehicles per annum.

Maruti Suzuki, established in 1981 as a joint venture between the Government of India and Suzuki Motor Corporation of Japan, has grown to become India's largest automobile manufacturer. The company is renowned for its fuel-efficient small cars and maintains an extensive network of 4,564 touch points across 2,304 cities in India.

Responding to Market Growth

The Indian automotive industry is projected to grow significantly, with estimates suggesting a market size of USD 137.06 billion in 2025, expected to reach USD 203.25 billion by 2030 at a CAGR of 8.2%. This growth is attributed to rising disposable incomes, urbanization, and government initiatives promoting the automotive sector.

By increasing its manufacturing capabilities, Maruti Suzuki aims to meet this growing demand and potentially regain a 50% market share in India. The company currently operates manufacturing facilities in Gurugram and Manesar in Haryana, as well as a facility in Gujarat operated by Suzuki Motor Gujarat Private Limited.

The board meeting discussing this expansion took place from 12:00 noon to 1:15 p.m. on March 26, 2025, with the announcement made in a regulatory filing signed by Sanjeev Grover, Executive Officer & Company Secretary of Maruti Suzuki India Limited.